CNBC’s Stock Market Guru, Jim Cramer, Urges Investing in Mexico
Wall Street Raises Mexico`s Forecast
Jim Cramer, the Bombastic, high-energy investment Guru and host of CNBC’s massively successful show “Mad Money”, gave Mexico real estate investment a big boost this week. Cramer told his audience:
“It`s not such a bad idea to diversify away from stocks, I think that out of favor real estate in Mexico, that`s easily accessible... represents a great buy”.
With as many as 2.5 million investors viewing the show each week, the controversial host wields quite a bit of influence among his viewership and in the marketplace as a whole. His following is so intense that it has created a unique phenomenon in the stock market known as the “Cramer Bounce”, which can be best described “as the sudden overnight appreciation of a stock’s price after it has been recommended by Jim Cramer on his CNBC show”, “Mad Money”.
Why does Cramer have such clout? Well, after graduating magna cum laude from Harvard College, his first year as a rookie broker with Goldman Sachs, he made over $700,000. After he paid his dues at Goldman, Cramer started his own $450 million hedge fund where he earned 24% after fees, regularly taking home over $10 million a year. Cramer’s fund finished in 2001, up 36%, compared to -11% for the S&P 500 average and walked away with $100 million and change.
Since then, he founded TheStreet.com and has written five New York Times best selling books and his articles are featured in Time and New York Magazines. He also a frequent guest on Meet the Press, Today Show, 60 Minutes, NBC’s Nightly News, The Tonight Show and most major financial networks.
Following his own advice, Cramer recently announced to his audience that he had already purchased three properties in Mexico within the last few weeks. When asked about hyped headlines about drug violence and turmoil in Mexico, Cramer downplayed those fears, he said, "Mexico is a big country and not every province, every state is involved in the drug trade”, and he added, “it has to be one of the nicest places I`ve ever been."
When asked why he invested money in Mexico real estate, he replied, There is “no property tax,” the properties are “incredibly easy to maintain,” and there are “property managers everywhere.”
Mexico does have property tax, however is it so low (less than 1%) it seems as if it is non-existent.
“It`s not such a bad idea to diversify away from stocks, I think that out of favor real estate in Mexico, that`s easily accessible... represents a great buy”.
With as many as 2.5 million investors viewing the show each week, the controversial host wields quite a bit of influence among his viewership and in the marketplace as a whole. His following is so intense that it has created a unique phenomenon in the stock market known as the “Cramer Bounce”, which can be best described “as the sudden overnight appreciation of a stock’s price after it has been recommended by Jim Cramer on his CNBC show”, “Mad Money”.
Why does Cramer have such clout? Well, after graduating magna cum laude from Harvard College, his first year as a rookie broker with Goldman Sachs, he made over $700,000. After he paid his dues at Goldman, Cramer started his own $450 million hedge fund where he earned 24% after fees, regularly taking home over $10 million a year. Cramer’s fund finished in 2001, up 36%, compared to -11% for the S&P 500 average and walked away with $100 million and change.
Since then, he founded TheStreet.com and has written five New York Times best selling books and his articles are featured in Time and New York Magazines. He also a frequent guest on Meet the Press, Today Show, 60 Minutes, NBC’s Nightly News, The Tonight Show and most major financial networks.
Following his own advice, Cramer recently announced to his audience that he had already purchased three properties in Mexico within the last few weeks. When asked about hyped headlines about drug violence and turmoil in Mexico, Cramer downplayed those fears, he said, "Mexico is a big country and not every province, every state is involved in the drug trade”, and he added, “it has to be one of the nicest places I`ve ever been."
When asked why he invested money in Mexico real estate, he replied, There is “no property tax,” the properties are “incredibly easy to maintain,” and there are “property managers everywhere.”
Mexico does have property tax, however is it so low (less than 1%) it seems as if it is non-existent.
Did you know...
The quality of Mexican health care has been reported to be comparable to that in the United States.
According to the site www.internationalliving.com health care in Mexico is described as very good to excellent while being highly affordable, with every medium to large city in Mexico having at least one first-rate hospital. In fact, some California insurers sell health insurance policies that require members to go to Mexico for health care where costs are 40% lower. Some hospitals are internationally accredited. Americans, particularly those living near the Mexican border, now routinely cross the border into Mexico for medical care. Popular specialties include dentistry and plastic surgery. Mexican dentists often charge 20 to 25 percent of US prices, while other procedures typically cost a third of what they would cost in the US. The www.internationalliving.com site states that on average, an office visit with a doctor (specialist included) will cost about $25US, an overnight stay in a private hospital room costs about $35, and a visit to a dentist for teeth cleaning costs about $20. Some 40,000 to 80,000 American seniors spend their retirement years in Mexico with a considerable number receiving nursing home and health care.
With many physicians from the U.S. having received their training in Mexico, and with many Mexican doctors having received at least part of their training in the United States, the quality of Mexican health care has been reported to be comparable to that in the United States: In general, health care in Mexico is very good…and in many places it is excellent. Many people often arrive at the conclusion that because health care in Mexico is so cheap compared to the US, the quality of medical attention and knowledge about health care issues in Mexico must be lacking. This is completely false. Not only are Mexican hospitals equipped to a first world standard with modern equipment and hygienic practices, but many Mexican doctors and dentist in fact received their training in the US."
With many physicians from the U.S. having received their training in Mexico, and with many Mexican doctors having received at least part of their training in the United States, the quality of Mexican health care has been reported to be comparable to that in the United States: In general, health care in Mexico is very good…and in many places it is excellent. Many people often arrive at the conclusion that because health care in Mexico is so cheap compared to the US, the quality of medical attention and knowledge about health care issues in Mexico must be lacking. This is completely false. Not only are Mexican hospitals equipped to a first world standard with modern equipment and hygienic practices, but many Mexican doctors and dentist in fact received their training in the US."
Did you know...
Monday, August 9, 2010Wall Street Raises Mexico`s Forecast
According to a Wall St. Journal report, 31 separate economists have raised their economic growth forecast for Mexico for 2010. Surprisingly, this good news comes at a time when recent U.S. data indicates a economic slowdown for Mexico’s northern neighbor.
Analysts expect Mexico’s economy, which is already surging out of the recession, to increase 4.5% this year, up almost a full point from their estimate in June. Mexico’s economic boost is primarily coming from a surge in manufacturing exports and private investments.
The Mexican economy is benefiting from one of the lowest business tax environments, double-digit bank loan growth, lower unemployment, low national debt, an up-tick in tourism and increased inflow of real estate investments.
Mexico has one of the most stable economies worldwide coming out of the recession and Mexico’s President, Felipe Calderon, expects to have a balanced budget in 2010 as revenues recover along with the economy.
Mexico’s economic revenues grew $1.4 trillion in the first 6 months of 2010 and is expected to improve even more in the second half, putting Mexico on pace to be one of the few governments world wide to boast a balance budget.
Analysts expect Mexico’s economy, which is already surging out of the recession, to increase 4.5% this year, up almost a full point from their estimate in June. Mexico’s economic boost is primarily coming from a surge in manufacturing exports and private investments.
The Mexican economy is benefiting from one of the lowest business tax environments, double-digit bank loan growth, lower unemployment, low national debt, an up-tick in tourism and increased inflow of real estate investments.
Mexico has one of the most stable economies worldwide coming out of the recession and Mexico’s President, Felipe Calderon, expects to have a balanced budget in 2010 as revenues recover along with the economy.
Mexico’s economic revenues grew $1.4 trillion in the first 6 months of 2010 and is expected to improve even more in the second half, putting Mexico on pace to be one of the few governments world wide to boast a balance budget.
Did you know...
If facts don´t lie, is Mexico safer than the U.S.? by Patrick Osio
Here comes Easter break again and young people will be young people- high school and college kids will travel to distant places where the drinking age is either less than it is in the U.S. or where authorities don´t care of enforce minors´ drinking laws.
For several decades Mexico has been one such place of choice where the legal drinking age is 18. Mazatlan, Acapulco, Puerto Vallarta and Cancun were the fly to favorite places and Rosarito Beach and Ensenada the favorite drive to places from Southern California. - But not this year, or for that matter neither was it last year.
Our government and the U.S. media have convinced most Americans that Mexico is not a safe place to visit as drug traffickers are fighting it out to see wich gang will have the right to sell their illicit drugs to the group that will not be visiting Mexico. They will have to wait until they return from Easter break to get their Mexican smuggled drugs at home. But what really struck me was that the preferred country to visit Easter break in lieu of Mexico is the Dominica is rated as the number one country with the highest propensity for crime in the world.
According to facts gathered by NationMater.com, their total crime per 1,000 residents (per capita) is 113.822 - compared to the U.S. that is 8th in the world in total crimes at 80.0645 per 1000 residents, making changes of being a victim of a crime in Dominica better than 10%, and slightly less than an 8% chance of being a victim in the U.S.
But here is the real clunker - Mexico, the country our government tells us not to visit and the media has a field day reporting any crime be it significant or not to further put the fear of God into staying away from there - well, it ranks 39th in total crime in the world with a per capita of slightly less than 13 crimes per 1000 residents that is a 1.3% chance of being a victim crime in Mexico.
So Mexico is out, Dominica is in, yet the chances of being a crime victim there is a greater than in the U.S. and the changes of being a crime victim in the U.S. is greater than in Mexico. But, for our own safety we need to stay out of Mexico.
Have you ever felt like you´re being duped but you can´t quite put your finger on why - what´s the motive? Is it to keep us from facing some bitter truths?
We keep reading how crime is down, how safe we are compared to most other parts of the world. But is it true?
So here are some multiple choice questions for you:
1.- Which country has a higher crime rate per 1,000 residents?
a. Mexico, b. Germany, c. Canada, d. U.S.
2.- Which country has the highest murders with firearms?
a. Mexico, b. El Salvador, c. U.S.
3.- Of the following countries, which has the least number of drug offenses? a. Germany, b. United Kingdom, c. Canada, d. Switzerland, e. Mexico
4.- Which country has the most prisioners? a. United State, b. China, c. Russia, d. India, e. Mexico
(Answers: 1.d. U.S., 2.c. U.S., 3.e. Mexico, 4.a.U.S. - Source: www.nationmaster.com
In one of the only bright sopts due to its recent gang related murders, Mexico, on a per capita, ranks as more dangerous than the U.S. occupying No. 24 and Mexico No. 6 in the world, but in total number of murders the U.S. is No. 5 and Mexico No. 6.
In fact, much of the crime data per capita 1000 population suggests that in many respects Mexico is safer than the U.S.: in assaults the U.S. ranks No. 6, Mexico No. 20; burglaries the U.S. No. 17, Mexico No. 24; fraud U.S. No. 18, Mexico No. 29; Rape (Canada No. 5), U.S. 9, Mexico No. 17.
No doubt that at the expense of Mexico we are being duped. Is it to hide our insatiable appetite for illicit drugs and cheap labor, and so by pointing the finger of guilt to the biggest supplier of both we exculpate our actions or at minimum pacify our own guilt?
Maybe it´s time for "the home of the free, and land of the brave" to take note.
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For several decades Mexico has been one such place of choice where the legal drinking age is 18. Mazatlan, Acapulco, Puerto Vallarta and Cancun were the fly to favorite places and Rosarito Beach and Ensenada the favorite drive to places from Southern California. - But not this year, or for that matter neither was it last year.
Our government and the U.S. media have convinced most Americans that Mexico is not a safe place to visit as drug traffickers are fighting it out to see wich gang will have the right to sell their illicit drugs to the group that will not be visiting Mexico. They will have to wait until they return from Easter break to get their Mexican smuggled drugs at home. But what really struck me was that the preferred country to visit Easter break in lieu of Mexico is the Dominica is rated as the number one country with the highest propensity for crime in the world.
According to facts gathered by NationMater.com, their total crime per 1,000 residents (per capita) is 113.822 - compared to the U.S. that is 8th in the world in total crimes at 80.0645 per 1000 residents, making changes of being a victim of a crime in Dominica better than 10%, and slightly less than an 8% chance of being a victim in the U.S.
But here is the real clunker - Mexico, the country our government tells us not to visit and the media has a field day reporting any crime be it significant or not to further put the fear of God into staying away from there - well, it ranks 39th in total crime in the world with a per capita of slightly less than 13 crimes per 1000 residents that is a 1.3% chance of being a victim crime in Mexico.
So Mexico is out, Dominica is in, yet the chances of being a crime victim there is a greater than in the U.S. and the changes of being a crime victim in the U.S. is greater than in Mexico. But, for our own safety we need to stay out of Mexico.
Have you ever felt like you´re being duped but you can´t quite put your finger on why - what´s the motive? Is it to keep us from facing some bitter truths?
We keep reading how crime is down, how safe we are compared to most other parts of the world. But is it true?
So here are some multiple choice questions for you:
1.- Which country has a higher crime rate per 1,000 residents?
a. Mexico, b. Germany, c. Canada, d. U.S.
2.- Which country has the highest murders with firearms?
a. Mexico, b. El Salvador, c. U.S.
3.- Of the following countries, which has the least number of drug offenses? a. Germany, b. United Kingdom, c. Canada, d. Switzerland, e. Mexico
4.- Which country has the most prisioners? a. United State, b. China, c. Russia, d. India, e. Mexico
(Answers: 1.d. U.S., 2.c. U.S., 3.e. Mexico, 4.a.U.S. - Source: www.nationmaster.com
In one of the only bright sopts due to its recent gang related murders, Mexico, on a per capita, ranks as more dangerous than the U.S. occupying No. 24 and Mexico No. 6 in the world, but in total number of murders the U.S. is No. 5 and Mexico No. 6.
In fact, much of the crime data per capita 1000 population suggests that in many respects Mexico is safer than the U.S.: in assaults the U.S. ranks No. 6, Mexico No. 20; burglaries the U.S. No. 17, Mexico No. 24; fraud U.S. No. 18, Mexico No. 29; Rape (Canada No. 5), U.S. 9, Mexico No. 17.
No doubt that at the expense of Mexico we are being duped. Is it to hide our insatiable appetite for illicit drugs and cheap labor, and so by pointing the finger of guilt to the biggest supplier of both we exculpate our actions or at minimum pacify our own guilt?
Maybe it´s time for "the home of the free, and land of the brave" to take note.
<